System for processing a purchase request for goods or services

ABSTRACT

An invoice processing system includes a requisition and catalog server (referred to as a Req/Cat Web, or RCW, server), a procurement services system (SAP), and a requester terminal (browser). ReqCat Web allows requesters to input requirements (requisitions) which ReqCat then passes to SAP, which creates purchase orders, sends them to vendors for fulfillment, receives the vendors invoices, and prepares the payments. Commodities may be designated as either receivable or non-receivable, and this designation is stored in ReqCat web and passed to SAP on inbound requisitions. Payments on invoices received for non-receivable items are approved via a positive confirmation process, and payments on invoices received for receivable items are approved via a negative confirmation process. Positive acceptance of an invoice by a requester of commodities triggers automatic generation of a goods received (move) ticket.

CROSS REFERENCES TO RELATED APPLICATIONS

This application is a continuation application claiming priority of Ser.No. 09/819,462, filed Mar. 28, 2001.

The following U.S. patent applications, filed concurrently or otherwisecopending, are assigned to the assignee hereof and contain subjectmatter related, in certain respect, to the subject matter of the presentapplication.

-   Ser. No. 09/657,215, filed 7 Sep. 2000, entitled “System and Method    for Clustering Servers for Performance and Load Balancing”, assignee    docket END9-2000-0104-US1;

Ser. No. 09/657,216, filed 7 Sep. 2000, entitled “System and Method forFront End Business Logic and Validation”, assignee docketEND9-2000-0105-US1;

-   Ser. No. 09/657,217, filed 7 Sep. 2000, entitled “System and Method    for Data Transfer With Respect to External Applications”, assignee    docket END9-2000-0106-US1;-   Ser. No. 09/656,037, filed 7 Sep. 2000, entitled “System and Method    for Providing a Relational Database Backend”, assignee docket    END9-2000-0107-US1;-   Ser. No. 09/656,803, filed 7 Sep. 2000, entitled “System and Method    for Providing a Role Table GUI via Company Group”, assignee docket    END9-2000-0108-US1;-   Ser. No. 09/656,967, filed 7 Sep. 2000, entitled “System and Method    for Populating HTML Forms Using Relational Database Agents”,    assignee docket END9-2000-0109-US1;-   Ser. No. 09/657,196, filed 7 Sep. 2000, entitled “System and Method    for Catalog Administration Using Supplier Provided Flat Files”,    assignee docket END9-2000-0110-US1; and-   Ser. No. 09/657,195, filed 7 Sep. 2000, entitled “System and Method    for Providing an Application Navigator Client Menu Side Bar”,    assignee docket END9-2000-0111-US1.-   Ser. No . 09/815,318, entitled “SYSTEM AND METHOD FOR GENERATING A    COMPANY GROUP USER PROFILE”, assignee docket number END9 2000 0166    US1.-   Ser. No. 09/819,437, entitled “SYSTEM AND METHOD FOR SHARING DATA    ACROSS FRAMES USING ENVIRONMENT VARIABLES”, assignee docket number    END9 2000 0167 US1.-   Ser. No. 09/815,317, entitled “SYSTEM AND METHOD FOR SYNCHRONIZING    LEDGER ACCOUNTS BY COMPANY GROUP”, assignee docket number END9 2000    0168 US1.-   Ser. No. 09/815,320, entitled “SYSTEM AND METHOD FOR GROUPING    COMPANIES ACCORDING TO ACCOUNTING SYSTEM OR RULES”, assignee docket    number END9 2000 0169 US1.-   Ser. No. 09/815,316, entitled “SYSTEM AND METHOD FOR FRAME STORAGE    OF EXECUTABLE CODE”, assignee docket number END9 2000 0174 US1.-   Ser. No. 09/815,313, entitled “SYSTEM AND METHOD FOR INVOICE IMAGING    THROUGH NEGATIVE CONFIRMATION PROCESS”, assignee docket number END9    2000 0175 US1.-   Ser. No. 09/815,312, entitled “SYSTEM AND METHOD FOR LEVERAGING    PROCUREMENT ACROSS COMPANIES AND COMPANY GROUPS”, assignee docket    number END9 2000 0176 US1.-   Ser. No. 09/816,264, entitled “SYSTEM AND METHOD FOR PROCESSING TAX    CODES BY COMPANY GROUP”, assignee docket number END9 2000 0177 US1.-   Ser. No. 09/798,598, filed 2 Mar. 2001, entitled “SYSTEM AND METHOD    FOR MANAGING INTERNET TRADING NETWORKS”, assignee docket number END9    2000 0178 US1.

The above-identified patent applications are incorporated herein byreference.

TECHNICAL FIELD OF THE INVENTION

This invention pertains to procurement systems. More particularly, itrelates to a method and system for automating the payment of invoices,particularly useful for goods and services not coming through areceiving dock, including automating preparation of a move ticketresponsive to requestor entered positive confirmation.

BACKGROUND OF THE INVENTION Background Art

Historically, payments of invoices are triggered by a three way match:the invoice must match the purchase order (PO) terms and conditions, andthe goods received must match those stated in quality and quantityagainst that PO. A problem occurs, particularly with respect to generalprocurement items, when such items are not tangible things which comethrough a receiving dock. It this case, it is difficult to do the threeway match. For example, services may not flow through dock. As a result,procurement systems have defined an “invoice not received” situation,which results in payment not being made until someone does something—andthat initiates what is referred to as a paper chase. There is a need inthe art to improve upon the paper chase situation by eliminating thereceipt process.

Some procurement systems implement a “negative confirmation” processwhich results in payment of an invoice unless a requester submits arejection. In this process, when an invoice is received, a notificationis given to the requester alerting him to fact that the invoice will bepaid unless requester sends back a notification that it should not bepaid.

The problem with negative authorization is that, while it may work finefor low cost things, for larger (more expensive) things, the risk thatpayment will be made before negative confirmation could be received mybe too great.

It is an object of the invention to provide an improved business processfor general procurement and accounts payable activities.

It is a further object of the invention to provide a system and methodfor automating the preparation of move tickets based on requestorentered positive confirmation.

It is a further object of the invention to provide a system and methodfor automatically providing invoice information to a front endrequisition and catalog system keyed off of receipt of an invoice by aback end procurement services system.

SUMMARY OF THE INVENTION

A system and method for approving and paying an invoice for commodities,the method including the steps of receiving an invoice for commoditiesfrom a vendor; generating from the invoice a notification to anauthorizer that includes information needed to pay the invoice and aselectable button for authorizing or rejecting payment; and responsiveto authorization creating an automated receipt transaction file andentering the transaction file into a system for payment.

In accordance with an aspect of the invention, there is provided acomputer program product configured for approving and paying an invoice.

Other features and advantages of this invention will become apparentfrom the following detailed description of the presently preferredembodiment of the invention, taken in conjunction with the accompanyingdrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a system and flow diagram illustrating the preferredembodiment of the invention for processing invoices.

FIG. 2 is a system and flow diagram further illustrating the preferredembodiment of the invention.

BEST MODE FOR CARRYING OUT THE INVENTION

In accordance with the preferred embodiment of the invention, a systemand method is provided for processing invoices. Further, a negativeconfirmation process is modified so that a positive confirmation may berequired for selected commodity code and company code.

Referring to FIG. 1, an invoice processing system includes a requisitionand catalog server (referred to as a Req/Cat Web, or RCW, server) 40, aprocurement services system (SAP) 42, and a requester terminal (browser)46. ReqCat Web 40 allows requesters to input requirements (requisitions)51 which ReqCat then passes to SAP 42, which creates purchase orders 87,sends them to vendors 48 for fulfillment, receives the vendors invoices89, and prepares the payments. Companies have the option of designatingvarious commodities as either receivable or non-receivable, and thisdesignation is stored in ReqCat web 40 and passed to SAP 42 on inboundrequisitions 51.

In operation, responsive to a purchase request entered by a requestor atbrowser 46, front end RCW server 40 generates and sends to back end SAPserver a requisition 51. SAP 42 generates therefrom a purchase order 87for transmission (if electronic) or delivery (if paper or fax) to vendor48. The requisition and resulting purchase order may be materials orservices selected from a catalog maintained at RCW 40 and accessed byrequestor 46.

In accordance with the terms and conditions of the purchase order 87,vendor 48 returns an invoice 89 to SAP server 42 requesting payment forthe goods or services. Responsive to receipt of invoice 89, SAP 42prepares and communicates transaction information 404 to RCW 40, and RCW40 provides that information in transaction notification 65 to requestor46 in a format, such as a window or frame, including the transactioninformation 404 and a selection device, such as buttons 406 and 408, orthe like, for accepting or rejecting the invoice.

In the event that requestor 46 accepts the invoice, or authorizespayment, an automated goods received (move ticket) is generated back toSAP system 42 and payment made without further human intervention. Inthe event that requestor 46 rejects the invoice, an accounts payablerejection process 412 is initiated which, in an exemplary embodiment,may involve buyer 414 in advising vendor 48 of the rejection.

Referring to FIG. 2, the invoice processing system of the preferredembodiment of the invention includes a requester terminal 46, a Req/CatWeb web server 422, a Req/Cat web application server 423 and aprocurement services system (SAP) 42. Web server 422 includes a positiveconfirmation application 424 and a database 425, and application serverincludes an execution engine, a requisition bridge 427 and confirmationsinterface 428 to SAP system 42.

A positive confirmation process implemented by the system of FIG. 2provides the following functions:

-   (1) Providing notification 420 to requester 46 that an invoice 89    requiring positive confirmation has been received.-   (2) Recording the acceptance or rejection 421 of payment of the    invoice to database 425, herein an IBM DB2 database.-   (3) Notifying SAP 42 using an automated bridge 427 when payment of    an invoice is accepted.-   (4) Notifying Accounts Payable when payment is rejected.

An inbound bridge executed in positive confirmation bridge 426 providesfor marking inbound invoice 89 line items as requiring positiveconfirmation.

Requesters 46 are provided notice 420 of invoices which require positiveconfirmation. This notice directs the user (aka requester or authorizer)to a location where the positive confirmation can be performed. Theterms user, requester, authorizer are used to refer to personsrequesting commodities, which may be tangible goods or intangible goods,such as services, and to persons acting on behalf of or in lieu of suchpersons. A user interface represented by line 428 and executed byapplication 424 is provided to database 425 for requester 46 to enter aninvoice ID and obtain access to the invoice data. This interface alsoprovides a method for accepting or rejecting the invoice, that is, forproviding positive confirmation response 421. By using log information,users are prevented from accessing an invoice that is not their own. Theinterface 424 records acceptance or rejection of payment in database425.

Positive confirmation notices 420, sent by e-mail to requester 46,direct the requester to review a positive confirmation notice withinReq/Cat 422.

On a scheduled basis mail is generated to notify accounts payable (AP)of any new invoice items for which payment has been rejected. On ascheduled basis a bridge, possibly implemented within positiveconfirmation bridge 426, sends data from database 425 to SAP 42 for anynew invoice items for which payment has been accepted.

This bridge executed within positive confirmation bridge 426 may bewritten to extract positive confirmation responses received by RCW 422from requesters 46, and pass the extracted file of responses to SAP 42for posting as goods receipts.

Companies for which the procurement services system (SAP) are providedhave the option of designating commodities as either receivable ornon-receivable. Commodities designated as non-receivable follow atraditional negative confirmation process for payment authorization.Commodities designated as receivable and that were sourced from ReqCatWeb 423 require a positive confirmation 421 from the requester 46 toauthorize payment to proceed.

SAP 42 passes a confirmations interface 428 to RCW server 423 containinginvoices 89 posted against both receivable and non-receivable purchaseorder (PO) items. 1 Those invoices posted against non-receivable POitems are considered negative confirmation records, and those invoicesposted against receivable PO items are considered positive confirmationrecords. ReqCat Web 422 notifies requester 46 of positive confirmationconditions which require his/her action. The requester logs on to ReqCatWeb 422 and responds to the positive confirmation notice 420 byindicating that all goods invoiced have been received. ReqCat Webupdates the appropriate positive confirmation record in database 425with the positive confirmation response 421.

On a daily basis, positive confirmation bridge 426 invokes a map toidentify all positive confirmation responses 421 recorded in database425 since last execution. This map within bridge 426 creates an outputfile of all positive confirmation responses recorded since the map waslast executed. A delivery component in server 423 is then invoked toinitiate transfer of the output file to SAP 42. Upon successful transferof the positive confirmation file to SAP 42, a SAP goods receipt mapformats the incoming data as required by SAP and invokes a SAP materialmovement IDOC function to post the goods receipt against thecorresponding purchase order item.

All transmissions for positive confirmation records to SAP 42 areinitiated by the sending system 423. A script on the ReqCat Webapplication sever 423 is scheduled to run on a periodic, say daily,basis to invoke a map which identifies all positive confirmationresponses recorded since the map was last executed and create an outputfile of those responses and invoke a delivery component in SAP 42. Onthe SAP 42 side of the transfer, a bridge receives the output file as agoods movement IDOC file, and a script executes within SAP 42 to receivethe file, do trailer processing, copy the input file to a history file,raise an SAP user event to start a job to create SAP goods movementdocuments and post the goods receipt documents in support of eventualpayments against the approved invoices to the vendor.

Advantages over the Prior Art

It is an advantage of the invention that there is provided an improvedbusiness process for general procurement and accounts payableactivities.

It is a further advantage of the invention that there is provided asystem and method for automating the preparation of move tickets basedon requestor entered positive confirmation.

It is a further advantage of the invention that there is provided asystem and method for automatically providing invoice information to afront end requisition and catalog system keyed off of receipt of aninvoice by a back end procurement services system.

Alternative Embodiments

It will be appreciated that, although specific embodiments of theinvention have been described herein for purposes of illustration,various modifications may be made without departing from the spirit andscope of the invention. In particular, it is within the scope of theinvention to provide a computer program product or program element, or aprogram storage or memory device such as a solid or fluid transmissionmedium, magnetic or optical wire, tape or disc, or the like, for storingsignals readable by a machine, for controlling the operation of acomputer according to the method of the invention and/or to structureits components in accordance with the system of the invention.

Further, each step of the method may be executed on any generalcomputer, such as an IBM System 390, AS/400, PC or the like and pursuantto one or more, or a part of one or more, program elements, modules orobjects generated from any programming language, such as C++, Java,Pl/1, Fortran or the like. And still further, each said step, or a fileor object or the like implementing each said step, may be executed byspecial purpose hardware or a circuit module designed for that purpose.

Accordingly, the scope of protection of this invention is limited onlyby the following claims and their equivalents.

1. A system, comprising a front end server, a back end server, and atleast one physically tangible computer readable storage device storingcomputer readable program instructions, said front end server and saidback end server configured to execute said program instructions toimplement a method for processing a purchase request for goods orservices, said method comprising: receiving, by a front end server froma requestor, the purchase request for goods or services, said goods orservices having a designation denoting that the goods or services arereceivable which requires a positive confirmation from the requestor toprovide authorization to pay for the goods and services, saiddesignation being stored in the front end server, an invoice processingsystem comprising the front end server, an application server and a backend server, said back end server coupled to the front end server via theapplication server, said front end server comprising a positiveconfirmation application and a database, said application servercomprising a positive confirmation bridge; sending, by the front endserver to the back end server, a requisition comprising requirementsrelating to the received purchase request and including the designation;generating, by the back end server in response to receiving therequisition sent by the front end server, a purchase order based on therequisition; said back end server transmitting or delivering thepurchase order to a vendor that can provide the requested goods orservices; after said transmitting or delivering the purchase order tothe vendor, said application server receiving an invoice from thevendor, said invoice referencing the purchase order and requestingpayment for the goods or services; after said application serverreceiving the invoice from the vendor, said positive confirmation bridgemarking the invoice to indicate that said positive confirmation isrequired; after said positive confirmation bridge marking the invoice,said back end server receiving the invoice from the application server;responsive to said back end server receiving the invoice from thepositive confirmation bridge, said back end server communicatingtransaction information pertaining to the invoice to the front endserver; after said communicating transaction information, said positiveconfirmation application providing notice to the requestor that theinvoice has been received and that the invoice includes the requiredpositive confirmation, said notice directing the requestor to a locationwhere the positive confirmation can be performed; after said providingnotice to the requestor, said front end server receiving a response fromthe requestor for authorizing or rejecting payment for the goods orservices; and after said front end server receiving the response, saidfront end server recording the response in the database.
 2. The systemof claim 1, wherein the received response is for authorizing payment forthe goods.
 3. The system of claim 2, wherein the application serverfurther comprises a requisition bridge, wherein the method furthercomprises: after said receiving the response, said application servernotifying the back end server via the requisition bridge that paymentfor the goods has been authorized.
 4. The system of claim 1, wherein thereceived response is for rejecting payment for the goods.
 5. The systemof claim 1, wherein the notice directs the requestor to a location wherethe positive confirmation can be performed.
 6. The system of claim 1,wherein the application server further comprises a confirmationinterface to the database, wherein the confirmation interface isconfigured to be executed by the positive confirmation application, andwherein the method further comprises after said providing notice andbefore said receiving the response: providing the confirmation interfaceto the requester to enable the requestor to both enter an identifier ofthe invoice and obtain access to data comprised by the invoice.
 7. Thesystem of claim 6, wherein said receiving the response is performed viathe confirmation interface.
 8. A computer program product, comprising atleast one physically tangible computer readable storage device storingcomputer readable program instructions, said program instructionsconfigured to be executed by a computer system to implement a method forprocessing a purchase request for goods or services, said methodcomprising: receiving, by a front end server from a requestor, thepurchase request for goods or services, said goods or services having adesignation denoting that the goods or services are receivable whichrequires a positive confirmation from the requestor to provideauthorization to pay for the goods and services, said designation beingstored in the front end server, an invoice processing system comprisingthe front end server, an application server and a back end server, saidback end server coupled to the front end server via the applicationserver, said front end server comprising a positive confirmationapplication and a database, said application server comprising apositive confirmation bridge; sending, by the front end server to theback end server, a requisition comprising requirements relating to thereceived purchase request and including the designation; generating, bythe back end server in response to receiving the requisition sent by thefront end server, a purchase order based on the requisition; said backend server transmitting or delivering the purchase order to a vendorthat can provide the requested goods or services; after saidtransmitting or delivering the purchase order to the vendor, saidapplication server receiving an invoice from the vendor, said invoicereferencing the purchase order and requesting payment for the goods orservices; after said application server receiving the invoice from thevendor, said positive confirmation bridge marking the invoice toindicate that said positive confirmation is required; after saidpositive confirmation bridge marking the invoice, said back end serverreceiving the invoice from the application server; responsive to saidback end server receiving the invoice from the positive confirmationbridge, said back end server communicating transaction informationpertaining to the invoice to the front end server; after saidcommunicating transaction information, said positive confirmationapplication providing notice to the requestor that the invoice has beenreceived and that the invoice includes the required positiveconfirmation, said notice directing the requestor to a location wherethe positive confirmation can be performed; after said providing noticeto the requestor, said front end server receiving a response from therequestor for authorizing or rejecting payment for the goods orservices; and after said front end server receiving the response, saidfront end server recording the response in the database.
 9. The computerprogram product of claim 8, wherein the received response is forauthorizing payment for the goods.
 10. The computer program product ofclaim 9, wherein the application server further comprises a requisitionbridge, wherein the method further comprises: after said receiving theresponse, said application server notifying the back end server via therequisition bridge that payment for the goods has been authorized. 11.The computer program product of claim 8, wherein the received responseis for rejecting payment for the goods.
 12. The computer program productof claim 8, wherein the notice directs the requestor to a location wherethe positive confirmation can be performed.
 13. The computer programproduct of claim 8, wherein the application server further comprises aconfirmation interface to the database, wherein the confirmationinterface is configured to be executed by the positive confirmationapplication, and wherein the method further comprises after saidproviding notice and before said receiving the response: providing theconfirmation interface to the requester to enable the requestor to bothenter an identifier of the invoice and obtain access to data comprisedby the invoice.
 14. The computer program product of claim 13, whereinsaid receiving the response is performed via the confirmation interface.